A meeting of the City Corporation council held on Monday decided to cancel a decision taken by the Tax Appeals Standing Committee last year to give tax exemptions to the Tejaswini building on the Technopark campus.
Over the past few months, the ruling LDF had been cornering the opposition BJP, accusing the Standing Committee Chairperson Simi Jyothish of the BJP, of causing a loss of ₹4.92 crore to the local body by giving the exemption against the norms.
The Corporation council had in October 2008 taken a decision to increase the tax rate for new buildings located in the panchayats newly added to the local body from, 6% to 18%.
The Local Self Government Department Secretary had in 2016 written to the Corporation asking for the tax rate to be reassessed, as per a request from Technopark.. The Tax Appeals Standing Committee agreed to Technopark’s claim that the building was completed before October 2008, and reduced the tax rate back to 6%.
The ruling LDF had alleged the standing committee chairperson had taken a decision without consulting anyone. As per the Municipal Act, any decision of the standing committee has to be communicated to the Corporation Secretary, which was not done.
On Monday, the BJP councillors argued that they are in support of any move to claim the revenues belonging to the Corporation, but was against politically motivated allegations against its councillor.
“This was a decision that was taken in a transparent manner. There is nothing illegal about it. The decision was based on a letter given by the Technopark CEO to the State government. The building was completed months before the Corporation council took the decision in October 2008,” said BJP councillor Girikumar.
The United Democratic Front (UDF) though alleged that the LDF and BJP had arrived at a secret understanding, and are now trying to hush up the issue.
Simi Jyothish, the BJP councillor in the eye of the storm, said that the issue is being used to personally attack her. She said that she welcomes the Corporation’s stand to cancel the committee’s decision on tax exemption.
“The council is now acting as a corrective force. The decision of the tax appeals standing committee stands cancelled. Notice will be issued to the party concerned to pay the outstanding taxes at 18 % as per the earlier decision. The quick verification into the corruption allegations is now in progress,” said Mayor V.K.Prasanth.
